Former Broch firm BrewDog is planning to expand its operations in Ellon by buying land being used as a council recycling centre.
Under the £5 million deal, the craft brewer proposes to develop the ground next to its brewery at Balmacassie Industrial Estate for warehousing.
The local authority’s recycling centre was built in 2011 and is set to be moved to another site at Balmacassie.
The council would hand over the land to BrewDog in January 2016, by which time replacement recycling facilities are due to be completed.
A planning application is about to be lodged for the centre by the authority’s property service to assist BrewDog’s plans.
Formartine Area Committee chairman Rob Merson said: “We know BrewDog is an ambitious company and of course we want to support that ambition, which will ultimately boost the local economy and raise the area’s profile.
“Although it is not an easy process to relocate facilities, especially those which were recently built, the council is working hard to ensure there will be no cost or disruption to our community while allowing the business to develop and expand.”
A BrewDog spokesman said the additional land would be used for further warehousing requirements.
He added that the warehousing will be needed as a result of the expanded brewery, which is due to become operational at the beginning of 2016.
BrewDog was established in Fraserburgh in 2007 and later moved its headquarters to Ellon. The company has enjoyed swift expansion, employing hundreds of people and opening new bars in the UK and abroad.